Posts belonging to Category UK

Banks are now assuming there will be a “hard Brexit”

HSBC Says Companies Already Re-Routing Business

HSBC Holdings Plc said some of its largest clients have already asked for their business to be routed through the bank’s offices in mainland Europe and aren’t waiting to see what Brexit deal the U.K. hammers out with the continent’s trading bloc.…  Fri.,  14 April 2017

RBS road to recovery

RBS rising from ruins as shadow of former self

Nine years after the beginning of a 45-billion-pound ($56 billion) bailout by the British government, Royal Bank of Scotland (RBS.L) is emerging from its restructuring process a shadow of what was once the biggest lender in the world. RBS had a balance sheet of 2.4 trillion pounds in 2008 – almost double Britain’s annual economic output at the time – having staged a meteoric rise from being a small Scottish lender in the early 1990s.

Since the bailout it has offloaded billions of pounds of assets a week, as it tries to shrink down to being a simple UK-focused lender. Later this year RBS will shut its Capital Resolution division, which has sold off large chunks of its huge stockpile of unwanted assets. The closure will mark a milestone in the bank’s road to recovery, with its balance sheet around 1.6 trillion pounds lighter than when its great sell-off began.…  Mon.,  03 April 2017

Brexit: JPMorgan Said in Talks for Dublin Office

Citi Weighs EU Unit

JPMorgan Chase & Co. is in talks to buy a Dublin office building as the bank considers expanding in the Irish capital as one of its options for when Britain leaves the European Union, according to people with knowledge of the matter. The lender is negotiating the potential purchase of a building being developed by a venture between Kennedy Wilson Holdings Inc. and Ireland’s National Asset Management Agency, the people said, asking not to be identified because the plans are private. The building at 200 Capital Dock has about 130,000 square feet (12,000 square meters) of space, the people said. That’s enough for more than 1,000 workers.…  Fri.,  31 March 2017

Brexit: Lloyd’s of London chooses Brussels to set up it’s Hub

London’s 329-year old insurance market is setting up in Brussels to counter Brexit effects

Lloyd’s of London, the insurance market founded in the British capital in 1688, plans to open a European Union hub in Brussels following the U.K. vote to leave the bloc. The company expects the office to be operational at the beginning 2019, it said in a statement on Thursday, without giving further details on the move.

“The decision of the U.K. to leave the European Union has obvious implications for the market and our business with Europe,” Chairman John Nelson said in the company’s annual report. “Finding the right solution has been a top priority over the last nine months.”…  Thu.,  30 March 2017

Brexit: What is Article 50 ?

The only explanation you need to read

Brexit is the greatest disaster to befall the European Union in its 59-year history but the referendum in which British voters opted to leave the European Union does not automatically signal the country’s exit. That is the job of Article 50Britain’s complex negotiations to exit the EU can only begin when Article 50 of the Treaty of Lisbon is formally triggered by the UK.…  Mon.,  27 March 2017

Brexit: Heineken beers no more sold in Tesco

Tesco pulls Sol, Amstel and Tiger from shelves in Brexit price row

Fans of Heineken beers including Amstel, Sol and Kingfisher will not be able to find them in Tesco for the foreseeable future after the supermarket refused to accept price increases the brewer blamed on Brexit and the budget. Several of Heineken’s brands have been absent from Tesco shelves for six weeks after annual talks over pricing ended in a stalemate. In total, 24 out of 53 Heineken brands are affected, with eight pulled from the shelves altogether. Heineken is understood to have argued that inflation since the Brexit referendum has pushed up its costs, echoing the argument made by Unilever in its dispute with Tesco over the price of Marmite last autumn.…  Thu.,  23 March 2017

Article 50: “Do not try to bypass parliament sovereignty!” says Miller

Brexit court challenger Gina Miller is ‘absolutely’ ready to take the government back to court

Gina Miller, the woman who changed the course of British political history after winning a High Court challenge against the government on Brexit at the end of last year, would take the government back to court if it “tried to bypass” parliament sovereignty. Miller won a High Court battle last year to force the government to get parliamentary approval for the triggering of Article 50, which begins the two year process of negotiating Brexit.…  Wed.,  22 March 2017

“Get out of London now”

City vacancies plummet as firms move jobs overseas

According to Morgan McKinley’s London Employment Monitor, the jobs market was under stress in February, with a 23% decrease in jobs available month-on-month. Vacancies were also down 17% year-on-year. With Article 50 set to be triggered in the coming weeks, the recruitment website said that many large companies have found it was “easier to get ahead of the worst case scenario now” and leave London.

“The data suggests that Brexit has had a fundamental depressing effect on City jobs,” said Hakan Enver, operations director at Morgan McKinley’s financial services. “We’ve already witnessed, what was a handful of jobs leaving, become hundreds. How long before we’re looking at losing thousands, even millions?”…  Fri,  17 March 2017

FTSE 100 hits record high after US interest rate hike and Dutch election

European stock markets have hit their highest level in 15 months

European stock markets have hit their highest level in 15 months, as the Dutch election results calm fears over the region. Amsterdam’s stock exchange is romping ahead, hitting its highest level since the start of the financial crisis in 2007. And in London, the FTSE 100 is keeping climbing. It’s now up over 50 points at 7423 for the first time ever.…  Thu,  16 March 2017

Brexit exposes 1.4 million UK jobs

US companies say $593 billion of investment at risk

The UK and EU are critical economic partners for the United States. In 2015 the U.S. exported $123.5 billion in goods and services to the UK, and imported $111.5 billion worth of British goods and services. The U.S. is Britain’s largest export destination after the EU.  U.S.-UK trade is significant. But the real driver of the British-American economy is investment.

In 2015, U.S. foreign direct investment in the UK totaled a record $593.0 billion and UK foreign direct investment in the U.S. totaled $483.8 billion. Estimated sales of American affiliates in the UK and British affiliates in the U.S. totaled more than $1.3 trillion. The UK accounted for 22% of overall global U.S. assets outside the United States.  U.S. affiliates employ almost 1.4 million workers in the UK while UK affiliates employ roughly 1.1 million Americans.
British firms were the #1 source of onshored jobs in 25 of the 50 U.S. states in 2014.

America’s capital stock in the UK ($593 billion) is more than double the combined U.S. investment in South America, the Middle East and Africa ($244 billion). Total U.S. investment stock in China was just 13% of the comparable figure in the United Kingdom in 2015.…  Thu,  09 March 2017